Give at least two examples of situations illustrating the use of cash and accrual methods.
Accounting is the means by which information about an enterprise is communicated and, thus, is sometimes called the language of business. Many different users have need for accounting information in order to make important decisions. These users include investors, creditors, management, governmental agencies, labor unions, and others. Investors and other stakeholders in the firm need regular financial information to help them monitor the firm's progress. Financial reporting should provide information that is:
* Useful to present and potential investors and creditors and other users in making rational investment, credit, and other financial decisions.
* Helpful to present and potential investors and creditors and other ...
438 words to explain two examples of cash accrual methods. References included.